Chapter Eight

1. Chapter Eight Product, Services, and Brands: Building Customer Value

2. New-Product Development Process Major Stages in New-Product Development

3. Product Life-Cycle Strategies Product Life Cycle

4. Product Life-Cycle Strategies • Product development • Sales are zero and investment costs mount • Introduction • Slow sales growth and profits are nonexistent • Growth • Rapid market acceptance and increasing profits. • Maturity • Slowdown in sales growth and profits level off or decline • Decline • Sales fall off and profits drop

5. Product Life-Cycle Strategies Slow sales growth Little or no profit High distribution and promotion expense Introduction Stage

6. Product Life-Cycle Strategies Sales increase New competitors enter the market Price stability or decline to increase volume Consumer education Profits increase Promotion and manufacturing costs gain economies of scale Growth Stage

7. Product Life-Cycle Strategies Slowdown in sales Many suppliers Substitute products Overcapacity leads to competition Increased promotion and R&D to support sales and profits Maturity Stage

8. Product Life-Cycle Strategies Market modifying Product modifying Marketing mix modifying Maturity Stage Modifying Strategies

9. Product Life-Cycle Strategies Maintain the product Harvest the product Drop the product Decline Stage

10. Product Life-Cycle Strategies

11. Branding Strategy: Building Strong Brands Brand represents the consumer’s perceptions and feelings about a product and its performance. It is the company’s promise to deliver a specific set of features, benefits, services, and experiences consistently to the buyers

12. Branding Strategy: Building Strong Brands Brand strategy decisions include: Product attributes Product benefits Product beliefs and values Brand Positioning

13. Branding Strategy: Building Strong Brands Desirable qualities Suggest benefits and qualities Easy to pronounce, recognize, and remember Distinctive Extendable Translatable for the global economy Capable of registration and legal protection Brand Name Selection

14. Branding Strategy: Building Strong Brands Manufacturer’s brand Private brand Licensed brand Co-brand Brand Sponsorship

15. Branding Strategy: Building Strong Brands Brand Development Strategies

16. Services Marketing Nature and Characteristics of a Service